MD_DA210

     Fluid Milk and Cream - Eastern U.S.

     Report 51 - Released on December 19, 2018

     Northeast milk production is relatively flat to slightly increasing. Class I sales are down
     this week, as educational institutions are closing for the holiday. There are expectations
     that balancing operations will receive higher milk volumes in the near future. Some market
     participants are placing milk into tolling arrangements. Also, some Class II operations will
     be shut down for a couple weeks. Mid-Atlantic milk production is currently level. There are
     reports of balancing plants running below capacity. Moreover, some operations are shut down
     for the holidays. Southeast milk output is fairly flat this week. Class I sales are down a
     bit as bottlers are cutting orders. Some manufacturers are receiving more milk loads.
     Haulers continue to transport milk to the Southeast from neighboring regions to fill all
     current orders. Florida milk output is steadily climbing. Cooler temperatures have impacted
     cow comfort. Class I sales are surprisingly strong and outpacing milk production. Even with
     schools closing, market participants are not seeing much of a decrease in bottling orders
     currently. Some manufacturers continue to heavily receive milk loads from other areas to
     fill orders. This is unusual for some manufacturers as they have never received other
     regions' milk loads this late in the year. Cream multiples continue to decrease leading up
     to the holiday, currently ranging 1.10-1.25. However, multiples are higher than expected
     this week. There was healthy demand early in the week, but the market has softened right
     now. There are reports of increased butter production during the holiday. A number of cream
     end users, namely ice cream manufacturers, are planning to shut down for multiple weeks.
     With this, more cream will be available in the region. Condensed skim spot market activity
     is steady to lower, as some market participants' needs are filled through the end of the
     year. Some balancing operations are focused on filling contract orders more than drying
     right now. However, there are some expectations of more milk clearing into balancing during
     the holiday.

     National Retail Report Dairy ± Fluid Milk Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 12/14/18
     to 12/20/2018

     Half Gallon, All Fat Tests
                       Weighted Average Price
     National    This Period    Last Week   Last Year
      Organic       $3.76         $3.71       $3.87
      Conventional  $2.82         $2.33       $2.31

     Regional (Conventional)
                   Wtd. Ave.       Low         High
      Northeast      n.a.          n.a.        n.a.
      Southeast     $2.67         $2.50       $2.99

     Regional (Organic)
                   Wtd. Ave.       Low         High
      Northeast     $4.48         $3.99       $4.99
      Southeast     $3.94         $3.50       $4.49

     Northeastern U.S., F.O.B. Condensed Skim
     Price Range - Class II; $/LB Solids:         0.75 - 0.85
     Price Range - Class III; $/LB Solids:        0.70 - 0.84


     Northeastern U.S., F.O.B. Cream
     Multiples Range - All Classes:               1.1000 - 1.2500
     Price Range - Class II; $/LB Butterfat:      2.4085 - 2.7369


     Information for the period December 17 - 21, 2018, issued weekly

     Published by:
     Dairy Market News - Madison, WI
     JESSICA MUELLER, 608-422-8589
     Email: Jessica.Mueller@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home